Regional Issues

More Troubling Developments in the WA State Aircraft Tax Battle

March 2, 2010

Hopes that Washington State representatives would drop a proposed crushing
increase in that state's yearly aircraft tax were dashed yesterday, March 1, with the introduction of HB 3204, the revised House bill that adds a
wide range of excise taxes. Among those singled out for an increase are
Washington State aircraft owners, who will be hit with tax increases of up
to 1,400 percent.

A companion tax bill in the state Senate, SB 6873, was endorsed last week
by Senate Democrats, who predicted they already have the votes for
passage.

"This is very, very bad news," said NBAA Regional Representative Kristi
Ivey, "not only for aircraft owners in Washington State, but for aircraft
owners everywhere. If you are based or do business in Washington State,
please speak up now."

The proposed excise tax would create the highest registration rates in the
nation for several types of aircraft. The revised House tax bill even
added language to make it clear that aircraft in Washington State need not
even fly to make them subject to the tax, needing only a current
airworthiness certificate and/or an aviation fuel purchase to "constitute
the necessary evidence of aircraft use or intended use."

NBAA issued a call to action for Members in Washington State earlier last
month, and renewed it last Wednesday. NBAA's Ivey testified February 13 at
a House Finance Committee hearing, pointing out that the increase "will
make it difficult, if not impossible, for some operators to remain
competitive in the marketplace." She added that some aircraft operators
would move to other states, losing jobs and revenue for Washington State.

NBAA's Ivey noted that time is critical on this issue because the current
Washington State legislative session ends March 11.